#ROITV The effectiveness & ROI of TV adverts

Press releases
November 26, 2019

TV, the leading media for sales effectiveness criteria

SNPTV presents the results of the #ROITV study. Unique in France, it aims to analyse the impact of media levers on the sales and ROI of campaigns and present advertisers with effectiveness indicators that are common to all media.

Carried out by BearingPoint and MMZ, this study is based on the econometric expertise of five agencies (CSA Consulting, Dentsu Aegis, GroupM, OMD and Publicis Media).

With the increase in recent years of contact points between brands and their consumers, it has become both increasingly difficult and important to accurately measure the contribution made to sales by the various media in relation to the investments made. This is the objective of this econometric study which sheds light on:

sales in terms of turnover,
ROI per € invested,
the short and long term effects of campaigns,
the effects of synergies: impact of TV on the effectiveness of other media.

Because the measurement of the effectiveness and ROI of campaigns is more than ever a key element in the development of brands’ marketing strategies, this new study provides advertisers with key lessons on how to optimise their media planning.

TV distinguishes itself by combining

The largest contribution to sales
About 2/3 (65%) of the effects of media on sales are attributable to television.

It is affected very little by a saturation effect,
it is not affected by the law of diminishing returns despite a high investment threshold.

With a very high level of ROI:
4.9 for €1 invested.

Effective in the short-term, television doubles its effectiveness in the long-term:
its long-term effectiveness index compared to the short-term effectiveness index is 210, significantly higher than all other media.

The carryover effect of a TV campaign, namely its effectiveness on sales after the end of the communication, is 26 days compared to 14 days for social media.
Television boosts the effectiveness of other media levers:

on average, television increases the effectiveness of other media by 25%, which increases by as much its return on its initial investment which is already very high.

Effectiveness indicators for television, whether taken individually or together, show the unequalled effectiveness of television on sales.

This study confirms the results of other studies already published overseas.

The methodology: a multisector econometric approach

Five major representative sectors for television were studied: Automotive, Food, Hygiene/Beauty, Banking & Insurance, Pure-Players.

Three years of in-depth data was used to take account of the phenomena of seasonal variations and benefit from a variety of media combinations.

Fifteen econometric models from 85 campaigns analyse the factors contributing to sales.

To ensure the reliability of the study, five contributing agencies selected the campaigns and customers to be analysed themselves in line with the sectoral representation and multimedia investments. BearingPoint has been commissioned to ensure the privacy of data and consolidate the results with the scientific backing of MMZ Conseil, Zysla Belliat.

BearingPoint and MMZ Conseil are the institutes selected by the Union des Marques (Union of Brands) to construct “The Reference Framework”, its communication effectiveness measurement platform.

DEFINITIONS

ROI:
Value Created or Turnover in € for €1 media invested
= Contribution in media value to sales ÷ media investment.

Carryover effect:
Phenomenon of the continued effect of advertising over time after exposure to the message.

Synergy of the TV effect on other media:
the measurement of the way in which TV activation increases the effectiveness on sales of other media.

ABOUT SNPTV

Created in 1989, the SNPTV (Syndicat National de la Publicité Télévisée – National Syndicate of Television Advertising) brings together audiovisual companies and coordinates work designed to develop and promote audiovisual advertising tools.

The SNPTV has eight members: TF1 Pub, M6 Publicité, France Télévisions Publicité, Canal+ Brand Solutions, Next Media Solutions, Viacom International Media Networks, Amaury Media and Bein Régie.

BearingPoint

BearingPoint is an independent management and technology consulting firm with Europeans roots and global coverage. In addition to consulting, the firm offers advanced technological solutions and invests hugely in innovation at the service of its customers. With an international network of more than 10,000 staff members.

BearingPoint assists its customers in more than 75 countries and helps them to obtain measurable and permanent results.

MMZ

MMZ Conseil assists companies in the fields of Media and Marketing and Communication with a view to optimising brand strategies by privileging the relevance of recommendations that are easy to use and appropriate.

For this MMZ Conseil provides multifunctional and varied skills able to respond to the complex problems of today’s world. The services are based on three aspects: consulting, its advertising effectiveness decision-making software solutions platform, “Media Science Platform”, and training.